The Conservative Party has revealed plans to reform IR35 as part of a range of measures which are likely to be applauded by contractors.
Before IR35 was implemented in 1999, contractors were able to minimise their National Insurance contributions and income tax by working for their own limited company and paying themselves a low income, taking large dividends and charging expenses.
Since it was put in place, shadow business minister Mark Prisk argued that the government has often viewed self-employed workers with suspicion.
The current tax system has difficulty coping with people who are outside of traditional employment, such as the UK''s 1.4 million freelance workers, he added.
He told the Telegraph: "The current government has treated the self-employed disgracefully.
"More often than not they have treated them as if they are on the fiddle, which is wholly unacceptable."
Last month, the PCG - which has long campaigned for IR35 to be scrapped altogether - revealed that it is still pressing the government on the issue.
The controversial tax is still a priority for the organisation, managing director John Brazier told ContractorCalculator.
Posted by Sam Johns
